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• Operational EBIT: Increased for the full year 2024.

• Free Cash Flow: Improved significantly, reaching EUR145 million, up from EUR105 million in 2023.

• Net Debt: Reduced to EUR569 million from EUR640 million in the previous year.

• Leverage Ratio: Improved to 2.2, below the target of 3.

• Equity Ratio: At the top end of the target range at 45%.

• Media Finland Net Sales: EUR581 million for the full year.

• Media Finland Operational Margin: Improved to 8.2%.

• Learning Segment Impact: EUR28 million impact from distribution contracts in 2024.

• Dividend Proposal: EUR0.39 per share, an increase of EUR0.02, to be paid in three equal installments.

• Revenue Outlook for 2025: Expected between EUR1.28 billion and EUR1.33 billion.

• Operational EBIT Outlook for 2025: Expected between EUR170 million and EUR190 million.

• Warning! GuruFocus has detected 11 Warning Signs with FRA:SNQB.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sanoma Oyj (FRA:SNQB) reported an increase in operational EBIT and a strong improvement in free cash flow for 2024.

• The company successfully completed Program Solar, achieving over 80% of its efficiency targets, which is expected to deliver EUR55 million in efficiencies by 2026.

• Sanoma Oyj (FRA:SNQB) has reduced its net debt to EUR569 million, improving its leverage ratio to 2.2, well below the target of 3.

• The company has seen growth in digital subscriptions and advertising sales in Media Finland, offsetting declines in print.

• Sanoma Oyj (FRA:SNQB) is positioned for further growth with a focus on M&A opportunities, supported by improved balance sheet capacity.

Negative Points

• Net sales declined slightly due to the planned discontinuation of low-value learning material contracts in the Netherlands and Belgium.

• The company faces challenges in the Spanish market with declining sales, although this is partially offset by growth in other learning content markets.

• Sanoma Oyj (FRA:SNQB) anticipates continued modest growth in subscription sales but expects slightly lower B2B advertising sales in Media Finland.

• The company is still dealing with restructuring costs, particularly in Media Finland, which may continue to impact financials.

• Sanoma Oyj (FRA:SNQB) expects stable but not significantly improved free cash flow in 2025, with some uncertainty around advertising market conditions.

Q & A Highlights

Q: What macroeconomic conditions are assumed for Media Finland in the forecast? A: Rob Kolkman, CEO, stated that the forecast assumes slight economic growth for Finland. The expectation is for an improvement throughout the year, although the current base shows a decline rather than stability.